Finance
What is a 'balloon payment' in a Maine mortgage?
AAn extra payment made voluntarily by the borrower
BA large final payment due at the end of the loan term that pays off the remaining balance✓ Correct
CMonthly payments that increase each year
DA payment required when the property is sold
Explanation
A balloon payment is a large lump-sum payment due at the end of a loan's term that pays off the remaining balance. It typically follows a period of lower monthly payments based on a longer amortization schedule.
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